Meridian Mining enters pre-construction phase at Cabacal project
Meridian Mining PLC on Monday said it has entered the pre-construction phase at its Cabacal copper, gold and silver project, in Mato Grosso, Brazil, as it advances towards a final investment decision.
The Brazil-focused mineral exploration and development company said it has appointed engineering firm AFRY as its engineering, procurement and construction management contractor, committing USD30.9 million to pre-construction investments, including power transformers, road upgrades and processing equipment.
Meridian has secured an installation licence for a planned 24.3-kilometre power line and awarded engineering contracts for improvements to heavy vehicle access roads. The company said it is currently managing a competitive bidding process to select an engineering, procurement and construction contractor for the construction of the power line.
On financing, the company said it has received more than 20 indicative proposals, including several fully-funded packages totalling USD400 million covering project debt, cost overruns and any required equity contribution. It said the packages leave it in a strong position and is currently assessing the proposals.
Meridian is assessing the proposals to shortlist preferred financing partners. The project's definitive feasibility study estimates a net present value of USD2.1 billion and an internal rate of return of 108%.
Chief Executive Officer Gilbert Clark said: "Having a strong treasury of [about] USD90 million puts Meridian in a healthy position to move Cabacal forward and select the right partners as we move from developer to producer while expanding our copper and gold exploration programmes."
Meridian shares rose 3.7% to 89.60 pence on Monday morning in London.
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